NIPPON STEEL CORPORATION Nippon Steel Corporation (5401)
May 7, 2021 | ||||||||||||||||||
Results and dividends of Fiscal 2020 (Year ended March 31, 2021) | ||||||||||||||||||
(Billions of Yen) | ||||||||||||||||||
2020 FY | 1st half ⇒ | 2019 FY | 2019 FY⇒ | Previous Forecasts | ||||||||||||||
1st half | 2nd half | 2nd half | 2020 FY | (Released | ||||||||||||||
on Feb 5, 2021) | ||||||||||||||||||
Revenue | 4,829.2 | 2,241.9 | 2,587.2 | + 345.3 | 5,921.5 | - 1,092.3 | 4,850.0 | |||||||||||
Business profit before | 110.0 | (106.5) | 216.5 | + 323.0 | 76.5 | + 33.5 | 30.0 | |||||||||||
Impairment losses and others | ||||||||||||||||||
［ R O S ］ | [2.3%] | [-4.8%] | [8.4%] | ※4 | [+13.1%] | [1.3%] | ※4 | [+1.0%] | [0.6%] | |||||||||
Impairment losses and others | ― | ― | ― | ― | (360.9) | + 360.9 | ― | |||||||||||
Business Profit※1 | 110.0 | (106.5) | 216.5 | + 323.0 | (284.4) | + 394.4 | 30.0 | |||||||||||
［ R O S ］ | [2.3%] | [-4.8%] | [8.4%] | [+13.1%] | [-4.8%] | [+7.1%] | [0.6%] | |||||||||||
Additional line items※2 | (98.6) | (42.2) | (56.3) | - 14.1 | (121.7) | + 23.1 | (75.0) | |||||||||||
Profit for the year attributable | (32.4) | (191.1) | 158.7 | + 349.8 | (431.5) | + 399.1 | (120.0) | |||||||||||
to owners of the parent | ||||||||||||||||||
< Earnings per share (Yen) > | ＜-35.2＞ | ＜-207.6＞ | ＜172.4＞ | ＜+380.0＞ | ＜-468.7＞ | ＜+433.5＞ | ＜-130.0＞ | |||||||||||
EBITDA ※3 | 400.9 | 36.7 | 364.2 | + 327.5 | 466.8 | - 65.9 | 330.0 | |||||||||||
Interest-bearing debt | 2,559.2 | 2,769.2 | 2,559.2 | - 210.0 | 2,488.7 | + 70.5 | ||||||||||||
D/E ratio after adjusting for equity credit attributes | 0.70 | 0.85 | 0.70 | -0.15 | 0.74 | -0.04 | ||||||||||||
of subordinated loans and subordinated bonds | ||||||||||||||||||
（※1） Business Profit on Consolidated Statements of Profit or Loss indicates the results of sustainable business activities, and is an important measure to compare and evaluate the Company's consolidated | ||||||||||||||||||
performance continuously. It is defined as being deducted Cost of sales, Selling general and administrative expenses and Other operating expenses from Revenue, and added Share of profit in investments | ||||||||||||||||||
accounted for using the equity method and Other operating income. Other operating income and expenses are composed mainly of Dividend income, Foreign exchange gains or losses, Losses on disposal of fixed assets. | ||||||||||||||||||
（※2） Additional line items refer to the items that are not recurrent and are remotely related to operational activities, but have a material impact in terms of amount. | （※3） Business Profit + Depreciation + Impairment losses | |||||||||||||||||
＜Factors Influencing Performance＞ | ||||||||||||||||||
(1)Nippon Steel Corporation | ||||||||||||||||||
Consolidated crude steel output volume | 3,765 | 1,678 | 2,087 | +409 | 4,705 | - 941 | Approx. 3,780 | |||||||||||
(10,000 tons) | ||||||||||||||||||
Non-Consolidated crude steel output volume | 3,300 | 1,464 | 1,836 | +372 | 4,185 | - 885 | Approx. 3,320 | |||||||||||
(10,000 tons) | ||||||||||||||||||
Steel materials shipment volume | 3,122 | 1,446 | 1,677 | + 231 | 3,870 | - 748 | Approx. 3,120 | |||||||||||
(10,000 tons) | ||||||||||||||||||
Steel materials price (¥1,000/ton) | 86.1 | 83.6 | 88.3 | + 4.7 | 88.3 | - 2.2 | Approx. 86 | |||||||||||
Exchange rate (¥/$) | 106 | 107 | 105 | - 2 | 109 | - 3 | Approx. 106 | |||||||||||
(2)All Japan | ||||||||||||||||||
Crude steel output volume (10,000 tons) | 8,279 | 3,709 | 4,570 | + 861 | 9,843 | - 1,563 | Approx. 8,260 | |||||||||||
Steel consumption (10,000 tons)*1 | 5,266 | 2,513 | 2,753 | + 241 | 5,914 | - 649 | Approx. 5,230 | |||||||||||
(In manufacturing industries) | （ 3,300) | （ 1,526) | （ 1,774) | （+ 248) | （ 3,835) | （- 535) | (Approx. 3,280) | |||||||||||
<% of manufacturing> | < 62.7%> | < 60.7%> | < 64.4%> | <+ 3.7%> | < 64.8%> | <- 2.2%> | ||||||||||||
Plain carbon steel consumption (10,000 tons) | 4,181 | 1,999 | 2,182 | + 183 | 4,669 | - 488 | Approx. 4,150 | |||||||||||
In construction | 1,902 | 953 | 948 | - 5 | 2,007 | - 106 | Approx. 1,880 | |||||||||||
In manufacturing | 2,280 | 1,046 | 1,234 | + 188 | 2,662 | - 382 | Approx. 2,270 | |||||||||||
Specialty steel consumption (10,000 tons) | 1,085 | 513 | 571 | + 58 | 1,245 | - 160 | Approx. 1,080 | |||||||||||
Inventory volume (10,000 tons) | 507 | *2 | 516 | 507 | - 9 | 579 | - 72 | |||||||||||
Rolled sheets (10,000 tons) | 352 | *2 | 367 | 352 | - 15 | 439 | - 87 | |||||||||||
＊1 The Company estimates ＊2 The end of Mar. 2021, preliminary figures | ||||||||||||||||||
＜ Segment Information＞ | (Billions of Yen) | |||||||||||||||||
Revenue | 4,829.2 | 2,241.9 | 2,587.2 | + 345.3 | 5,921.5 | - 1,092.3 | 4,850.0 | |||||||||||
Steelmaking and Steel Fabrication | 4,228.4 | 1,965.8 | 2,262.6 | + 296.8 | 5,257.3 | - 1,028.9 | 4,240.0 | |||||||||||
Engineering and Construction | 324.4 | 151.5 | 172.9 | + 21.4 | 340.4 | - 16.0 | 330.0 | |||||||||||
Chemicals and Materials | 178.6 | 78.9 | 99.7 | + 20.8 | 215.7 | - 37.1 | 175.0 | |||||||||||
System Solutions | 252.4 | 121.7 | 130.7 | + 9.0 | 273.2 | - 20.8 | 255.0 | |||||||||||
Adjustment | (154.7) | (76.0) | (78.7) | - 2.7 | (165.2) | + 10.5 | (150.0) | |||||||||||
Business Profit | 110.0 | (106.5) | 216.5 | + 323.0 | (284.4) | + 394.4 | 30.0 | |||||||||||
Steelmaking and Steel Fabrication | 63.5 | (116.7) | 180.2 | + 296.9 | (325.3) | + 388.8 | 0.0 | |||||||||||
Engineering and Construction | 17.7 | 7.2 | 10.4 | + 3.2 | 10.7 | + 7.0 | 15.0 | |||||||||||
Chemicals and Materials | 7.6 | (3.6) | 11.2 | + 14.8 | 18.4 | - 10.8 | 0.0 | |||||||||||
System Solutions | 23.9 | 10.6 | 13.3 | + 2.7 | 26.1 | - 2.2 | 22.0 | |||||||||||
Adjustment | (2.7) | (3.9) | 1.2 | + 5.1 | (14.4) | + 11.7 | (7.0) |
(※4) Analysis in Business Profit before impairment losses and others (Billions of Yen) Changes from
the previous
forecasts
（※2） Additional line items | （Billions of Yen） | ||
2020 FY | 2019 FY | 19 FY | |
→20 FY | |||
Additional line items Total | (98.6) | (121.7) | + 23.1 |
Change in Business Profit
1.Ferrous materials business
① Manufacturing shipment volume
②Selling prices and production mix
③Raw materials prices (including
carry-over of raw materials)
④Cost improvement (including cost disadvantages due to production cuts)
⑤Depreciation (including the impact of changes in depreciation method and impairment)
⑥Inventory evaluation impact
⑦Group companies
⑧FOREX
⑨Loss on disaster 19 FY
⑩Others
2．Non-ferrous materials business
3．Adjustments
＋80.0
＋64.0
～
＋8.0 －1.0
＋15.0 ～ ＋120.0
－2.0 －18.0 ＋34.0 －30.0 ＋2.0 ＋1.0 ～ ＋42.0 ＋8.0 ＋5.0
＋12.0 －6.0 ＋4.0 ＋8.0
Losses from reorganization | (98.6) (121.7) | + 23.1 |
<2020 FY>
・Losses on inactive facilities: ¥79.9 billion (associated with the decision to close the upstream facility in Kokura Area for ¥39.8 billion and all the facilities at Kinuura Works of NIPPON STEEL Stainless Steel for ¥25.1 billion, etc.)
・Losses on business withdrawal: ¥18.7 billion (Sale of shares of VSB which resulted in a loss of ¥23.6 billion and sale of the shares of I/N Tek and I/N Kote ,etc.,)
<2019 FY>
・Impairment losses: ¥78.7 billion (associated with the decision to close all the facilities at Kure Works of Nippon Steel Nisshin)
・Losses on business withdrawal: ¥20.2 billion
(ZNW and an overseas subsidiary in Engineering and Construction segment, etc.,)
・Losses on inactive facilities: ¥22.7 billion (UO mill of Kashima Works and hot-rolling mill dedicated for precision products at Kinuura Works of NIPPON STEEL Stainless Steel, etc.,)
【Dividends】
In fiscal 2020, Nippon Steel Corporation recorded a loss attributable to owners of the parent of ¥32.4 billion (representing a loss of 191.1 billion yen in the first half and a profit of ¥158.7 billion in the second half) affected by the decrease in production and shipment volume partly due to the COVID -19 outbreak.
After the due consideration of the recent trend of recovery and the outlook for the operating performance, the Company is planning to propose a dividend payment of ¥10 per share (representing a total dividend of ¥10 per share for the full fiscal year) at the ordinary general meeting of shareholders as released on February 5, 2021 at the time of the announcement of the financial results for the third quarter of fiscal 2020.
-1- | (Continued on the following page) |
Nippon Steel Corporation (5401) | |||||||||||||
May 7, 2021 | |||||||||||||
Forecasts for Fiscal 2021 (Year ending March 31, 2022) | |||||||||||||
(Billions of Yen) | |||||||||||||
2020 FY 2nd half | 2020 FY⇒ | ||||||||||||
2021 FY forecasts | 2020 FY | ⇒ | |||||||||||
2021 FY | 2021 FY 1st half | ||||||||||||
2nd half | 2021 FY forecasts | ||||||||||||
1st half forecasts | forecasts | ||||||||||||
Revenue | 6,000.0 | 3,000.0 | 4,829.2 | 2,587.2 | + 412.8 | + 1,170.8 | |||||||
Business Profit※1 | 450.0 | 250.0 | 110.0 | 216.5 | ※4 | + 33.5 | ※4 | + 340.0 | |||||
［ R O S ］ | [7.5%] | [8.3%] | [2.3%] | [8.4%] | [-0.0%] | [+5.2%] | |||||||
Additional line items※2 | (85.0) | (45.0) | (98.6) | (56.3) | + 11.3 | + 13.6 | |||||||
Profit for the year attributable | 240.0 | 130.0 | (32.4) | 158.7 | - 28.7 | + 272.4 | |||||||
to owners of the parent | |||||||||||||
< Earnings per share (Yen) > | ＜261.0＞ | ＜141.0＞ | ＜-35.2＞ | ＜172.4＞ | ＜-31.4＞ | ＜+296.2＞ | |||||||
EBITDA ※3 | 780.0 | 410.0 | 400.9 | 364.2 | + 45.8 | + 379.1 |
（※1） Business Profit on Consolidated Statements of Profit or Loss indicates the results of sustainable business activities, and is an important measure to compare and evaluate the Company's consolidated
performance continuously. It is defined as being deducted Cost of sales, Selling general and administrative expenses and Other operating expenses from Revenue, and added Share of profit in investments
accounted for using the equity method and Other operating income. Other operating income and expenses are composed mainly of Dividend income, Foreign exchange gains or losses, Losses on disposal of fixed assets.
（※2） Additional line items refer to the items that are not recurrent and are remotely related to operational activities, but have a material impact in terms of amount. | （※3） Business Profit + Depreciation | |||||||||
＜Factors Influencing Performance＞ | ||||||||||
(1)Nippon Steel Corporation | ||||||||||
Consolidated crude steel output volume | Approx. 4,600 | Approx. 2,350 | 3,765 | 2,087 | Approx.+ 263 | Approx.+ 835 | ||||
(10,000 tons) | ||||||||||
Non-Consolidated crude steel output volume | Approx. 4,000 | Approx. 2,050 | 3,300 | 1,836 | Approx.+ 214 | Approx.+ 700 | ||||
(10,000 tons) | ||||||||||
Steel materials shipment volume | Approx. 3,600 | Approx. 1,850 | 3,122 | 1,677 | Approx.+ 173 | Approx.+ 478 | ||||
(10,000 tons) | ||||||||||
Exchange rate (¥/$) | Approx. 105 | Approx. 105 | 106 | 105 | Approx.+ 0 | Approx. - 1 |
(2)All Japan
Steel consumption (10,000 tons)*1
(In manufacturing industries)
<% of manufacturing>
Plain carbon steel consumption (10,000 tons)
In construction
In manufacturing
Specialty steel consumption (10,000 tons)
＊1 The Company estimates
Approx. 5,500 | Approx. 2,700 | 5,266 | 2,753 | Approx. - 53 | Approx.+ 234 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Approx. 3,500) | (Approx. 1,700) | ( 3,300) | ( 1,774) | (Approx. - 74) | (Approx.+ 200) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
< 62.7%> < 64.4%> Approx. 4,300 Approx. 2,100 4,181 2,182 Approx. - 82 Approx.+ 119 Approx. 1,900 Approx. 900 1,902 948 Approx.- 48 Approx. - 2 Approx. 2,400 Approx. 1,200 2,280 1,234 Approx. - 34 Approx.+ 120 Approx. 1,200 Approx. 600 1,085 571 Approx.+ 29 Approx.+ 115
Note: The forward-looking statements included in this report are based on the assumptions, forecasts, and plans of the Company as of the date on which this document is made public. The Company's actual results may differ substantially from such statements due to various risks and uncertainties.
Supplementary Information on the Financial Results for FY 2020 Nippon Steel's Business Environment and Actions Taken and To Be Taken 1. FY 2020 operating results
[Consolidated business profit in FY 2020] ¥110.0 billion (1H: loss of ¥106.5 billion, 2H: profit of ¥216.5 billion), ¥80 billion improvement vs. previous forecast.
2. FY 2021 business environment, profitability and cash flow measures, and actions to maximize non- consolidated operating profit Based on the profitable structure realized in FY 2020,
-3- recent highest profit, the company aims to substantially achieve the highest profit level after integration of former Nippon Steel and former Sumitomo Metals. *Post-mergerrecord-high ordinary profit (FY 2014): ¥471.3 billion (Nippon Steel 451.7 + former Nippon Steel Nisshin 19.6) [Consolidated business profit forecasts for FY 2021] ¥450.0 billion (1H: ¥250.0 billion), non-consolidated operating profit (excluding inventory valuation differences): ¥160.0 billion
Accelerate study for development and practical implementation of breakthrough technologies (steelmaking process) ahead of other countries (launch of a zero carbon steel project on April 1, 2021, in addition to the existing related committee). Enhance product appeal that meets advanced social needs toward carbon-neutral society (high-grade electrical steel sheets, ultra-high-tensile steel sheets, etc.). (5) Cash flow management with an emphasis on financial discipline Plan to sell land in Itabashi-ku, Tokyo (former Tokyo Works) in June 2021 (approximate profit on sale: ¥40.0 billion (consolidated) and ¥75.0 billion (non-consolidated)). -4- Nippon Steel Corporation (5401) May 7, 2021 Nippon Steel Corporation Code Number: 5401 Listings: Tokyo, Nagoya, Sapporo and Fukuoka Stock Exchanges Contact: Shinnosuke Arita, General Manager, Public Relations Center-Tel:+81-3-6867-2135, 2146, 2977, 3419 Supplementary Information on the Financial Results for Fiscal 2020 Japanese Steel Industry 1. Crude Steel Production (million tons)
*1 Hot-rolled,cold-rolled and coated sheets *2 Inventories of distributors dealing with H-flange beams manufactured by Nippon Steel Corporation *3 Preliminary report - 1 - This is an excerpt of the original content. To continue reading it, access the original document here. Attachments
Disclaimer Nippon Steel & Sumitomo Metal Corporation published this content on 07 May 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 May 2021 09:39:29 UTC. Share
© Publicnow - 2021
Nippon Steel Corporation is one of the Japanese largest iron and steel groups. Net sales break down by activity as follows:
- manufacturing of steel products (88.5%): long steel, flat steel, rails, sheets, iron bars, tubular products, etc.;
- engineering and construction services (4%): design, development and construction of offshore structures, infrastructures and environmental systems;
- technologic services (3.9%);
- manufacturing of chemical product (3.6%): primarily raw materials and iron and steel by-products (coal, coke, tar, etc.).
Net sales are distributed geographically as follows: Japan (60.2%), Asia (22.8%) and other (17%).
Sector
Iron & Steel
Calendar
09/05/2024
- Q4 2023 Earnings Release
Related indices
Trading Rating
Investor Rating
ESG Refinitiv
B Sell  Mean consensus OUTPERFORM Number of Analysts 10 Last Close Price
3,444
JPY Average target price
4,160
JPY Spread / Average Target +20.79% EPS Revisions
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